Safe and Sound

BREWSTER

Brewster, OH-based BREWSTER is an NCUA-insured credit union started in 1956. The credit union holds assets of $23.3 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 8 full-time employees, the credit union has amassed loans and leases worth $11.5 million. Its 3,338 members currently have $19.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BREWSTER exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is crucial. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, BREWSTER achieved a score of 18 out of a possible 30 points, better than the national average of 15.65.

BREWSTER appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets means a credit union could eventually have to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, BREWSTER scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Troubled assets made up 0.00 percent of BREWSTER's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, BREWSTER scored 12 out of a possible 30, exceeding the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming its peers in this area.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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